Chapter 12 - Outsourcing

Outsourcing

Has traditionally been applied to the transferring of business functions or processes to other foreign companies 

Advantages of Outsourcing

1. Cost reduction

2. Faster project completion

3. High level of expertise ]

4. Flexibility

Disadvantages

1. Coordination breakdown

2. Loss of control

3. conflict

4. security issues

5. political hot potato (large amount of issues)

Principled Negotiation

Is an approach to negotiating championed by Fisher and Ury from the Harvard Negotiation Project. Emphasizes developing win/win solutions while protecting yourself against those who would take advantage of your forthrightness

4 Key Points of Principled Negotiation

1. Separate the people from the problem

2. Focus on interests, not positions

3. Invent options for mutual gains

4. When possible, use objective criteria

Best Alternative to a Negotiated Agreement (BATNA)

The power to walk away and say, “No deal unless we work toward a win/win scenario”